Rama Krishna Sangem
India’s one of the valued brands, Aditya Birla Fashion share price: Aditya Birla Fashion and Retail (ABFRL) share price rose 15 per cent on April 2, Tuesday, after the company’s board authorised the management to evaluate demerger of Madura Fashion & Lifestyle business from ABFRL into a separate listed company.
Aditya Birla Fashion & Retail traded at ₹237.70, up 12.28 percent on the BSE, today and touched an intraday high of ₹243.45 and an intraday low of ₹229.70. It was earlier reported that around 1.34 crore shares of Aditya Birla Fashion & Retail (1.41 percent equity) worth ₹322.5 crore changed hands at an average ₹243 per share. The company said that through the proposed demerger it will create two separately listed companies.
Following approvals, the demerger will be implemented through an NCLT scheme of arrangement. All shareholders of ABFRL will have identical shareholding in the newly formed entity, the company said. ABFRL will also raise growth capital within 12 months to infuse strength into its balance sheet, it said.
Strong balance sheet
“The entity will have a strong balance sheet to power its future growth aspirations. Post necessary approvals, the demerger will be implemented through an NCLT scheme of the arrangement, and all shareholders of ABFRL will have an identical shareholding in the newly formed entity,” ABFRL announced.
Post-demerger, the portfolio of ABFRL would consist of value and masstige fashion retail play under Pantaloons and Style Up, ethnic wear, luxury and luxury platform of The Collective, Galleries Lafayette, and select luxury brands and TMRW. This also shows people are ready to spend good amount of money on fashion choices.
